Dyesol: Partnering to Harness the Power of the sunOverviewTypes of collaborative arrangementsDye-sensitized solar cells(DSC)A new type of low-cost thin-film solar cell that could generate electricity from sunlight in much the same way as plants conduct photosynthesisIn 2012, Australia based Dyesol was the world's foremost producer of building materials coated with dye-sensitized solar cells (DSC).-The 5th largest steelmaker -26 million USD in revenues in 2011-subsidiary of TATA group-A multinational glass manufacturer-373 million USD revenue in 2011-Headquartered in St.Helens, UK-the Float Glass Process in 1950s and licensed -In 2006, it was acquired by Nippon Sheet Glass (NSG) of Japan, together they formed the largest sheet-glass maker in the world.The world's largest DSC module, printed onto steel in a continuous lineAdvantages:Disadvantages:-Dyesol access to capital and manufacturing expertise-raise awareness of DSC technology-promote adoption of the technology across multiple international markets-Tata Group's chemical business learn to reserve engineer Dyesol's dye product-find ways to disturb Dyesol's patent-make strong competitorA 50/50 joint venture called DyeTec Solar-use Dyesol's DSC coating on architectural glass to create photovoltaic functionalityAdvantages:-marketed to customers who valued solar energy-Coated sheet-glass solar panels had never before been utilized in the commercial marketDisadvantages:-require significant time and investment-high uncertaintyThe advantages of going solo are compared with those of collaborating, and then different forms of collaboration are compared.Solo venturePartnershipReasons for going SOLO1. Availability of capabilities (does firm have needed capabilities in house? Does a potential partner?)2. Protecting proprietary technologies (how important is it to keep exclusive control of the technology?)3. Controlling technology development and use (how important is it for firm to direct development process and applications?)Alliance is a general term that can refer to any type of relationship between firms.4. Building and renewing capabilities (is the project key to renewing or developing the firm’s capabilities?) Collaborating can offer the following advantages:1. Obtaining needed skills or resources more quickly2. Reducing asset commitment and increase flexibility3. Learning from partnerand transfer knowledge4. Sharing costs and risksEspecially when project is very expensive or its outcome highly uncertain.5. Can build cooperation around a common standardWorldwide formation of technology or research alliances varies over time.Choosing a Model of CollaborationPartner SelectionPartner Monitoring and GovernanceSummaryA number of factors will influence firm’s collaboration, but the importance places on controlling the development process and innovation producedFirms may prefer in-house rather than access partner’s capabilitiesAdvantages of collaboration: sharing costs and risks, combining resource and skills, transferring knowledge and facilitating shared standardsThe term Strategic Alliances, JV, Licensing, Outsourcing, Collective Research organizationsDepending on cost, control, speed, potential for leveraging existing competencies, potential for new competencies, or potential for accessing another firm’s competencies each collaboration mode poses a different set of trade-offsSuccessful collaboration requires both Strategic fit and Resource fitAnd also requires developing monitoring and governance mechanismsHave a Nice Day !

Licensinga contractual arrangement that gives an organization (or individual) the rights to use another’s intellectual propertyOutsourcingWhen an organization (or individual) procures services or products from another rather than producing them in-house.

Strategic Alliancesformal or informal agreements between two or more organizations (or other entities) to cooperate in some way. Joint VentureCollective Research OrganizationOrganizations formed to facilitate collaboration among a group of firms.

Difficult to determine good for it or notCollaboration partner can exploit relationship that using more but giving lessManagers can monitor limited number of collaborationCompany choose partners very carefully and establish appropriate monitoringAlso, firm can evaluate partners:Impact on Opportunities and Treats in the external environmentImpact on Internal Strengths and WeaknessImpact on Strategic DirectionResource fitStrategic fitFigure 8.2 Technology Alliance StrategiesRelational governanceEquity ownershipAlliance contractsGovernance/Control mechanismsDoz and Hamel note that a firm’s alliance strategy might emphasize combining complementary capabilities or transferring capabilities. It might also emphasize individual alliances or a network of alliances